As part of the government’s drive to boost growth in the UK, it has announced a number of initiatives designed to reduce the regulatory burden on businesses and reform aspects of employment law. On 11 May 2011, the government announced that it will focus
on specific areas of employment red tape, including collective redundancy consultation periods, TUPE arrangements, and the possibility of placing a cap on compensation awarded by tribunals in successful discrimination cases.
Alison Loveday of Berg commented that: "It is promising that the Government has recognised that it needs to tackle onerous regulation that prevents businesses from creating jobs and growing. However, the Government will have to contend with European Law and
the European Court of Justice, which for example, ruled that the caps on discrimination compensation that were in place in the UK in the mid-90s were unlawful. A balance needs to be struck between the need to reduce unnecessary bureaucracy and administrative
burdens for employers, and ensuring the rights of individual employees are preserved. In this regard legislating alone cannot be the key to effective reform."